tv Power Lunch CNBC April 26, 2022 2:00pm-3:00pm EDT
report >> and a good reminder, bob, as much as we're watching 4,200, 4171 is more of a key technical level as you mentioned thank you. that does it for "the exchange" today, everybody, but don't move, "power lunch" begins right now. all right, and welcome, everybody, to "power lunch," and here's what is ahead for this very busy tuesday afternoon. the selling resumes, kelly's been talking about it, markets's dramatic rebound yesterday, that's gone. that's over with the nasdaq down more than 3% ahead of big earnings from big tech, and our market guest this hour says the bottom isn't in just yet you heard what pisani just said about the signal of a bear market if the s&p goes down below its moving average inflation, pricing power, social media stocks, and dividends, that is the subject we will talk about this hour, kelly. >> yes, kind of a witches brew, if you will. thank you, tyler, hi, everybody,
and we are near the session lows the dow's down 637 points. we're only about 20 points off the worst levels of the session right now, and the dow is outperforming. the s&p is down more than 2% it's at 4205 down 90 points. the nasdaq is down more than 400 points, more than 3%, clinging on to about 12,600 so all of those big tech-heavy areas, communication services, tech itself, and consumer discretionary, they're all more than 20% down from their 52-week highs. communication services down 30%, in fact. now, in the consumer discretionary group at the bottom here, down about 21%, you see the telling pressure not just in tech, which we mentioned quite a lot, but also everything from carnival corp. down 6% today, chipotle down 5%, to names like underarmor and nike also shetding 5 to 6% in today's session. the selloff comes ahead of big tech earnings later today. amazon on pace for its worst
month since october of 2018. microsoft tracking worst month since january of 2015. apple at risk ofclosing below its 200 moving day average our next guest says we haven't seen a bottom in the market yet. david trainer is the ceo of new constructs an investment research firm. also with us mike santoli at the nyse david, do you feel the same way today as you did yesterday, that we haven't seen a bottom yet, and what would tell you that we do or have >> i do not -- feel any different, tyler that i think we are certainly in a long-term down trend, and if i could pick the exact bottom, we'd be doing this interview on my yacht instead of my office. >> so what would the signals be that would tell -- would start to tell you that the washout has come what would you be looking for? >> i feel like the hard part about answering that question is that you don't know if it's
going to swing to the exact right spot -- value over adjust -- >> all right, david, we're going to try and fix your audio. we're having a little problem, but, mike, let me let you pick up on some of the questions i just asked david, which is what would the classic signals of a market bottom be, number one, and does -- is one of them the notion that bob just hit and that is that in a bear market everything goes down and this is a broad-based selloff today, very broad >> yeah, charlie, i mean, usually there is a textbook setup where you get an aggressive, very broad flush lower where there really isn't an immediate place to hide this is where you're going to get a kind of panic crescendo to a correction, bear market, whatever you want to call it i don't know that we're at a point of monitoring the market for exactly that thing i would point out, you know, the s&p 500 traded down just about to 4,200 in late january, got back there in late february, went a little below it in
mid-march and here we are again, which is to say it's been a very volatility trading range with a lot of time spent in the lower end of that range as we've absorbed everything from the economies over heating and the fed's going to go really fast to that's all happening at the same time we're worried about global growth today's action really does look like china, global growth concerns, the dollar is flying, and that creates this unsettled backdrop >> all right, david, let me go back to you and let you get your thoughts across because it was so broken up there i guess the basic question is what would for you the classic signals be that maybe a bottom was being put in >> i think we'd have to see stocks return to much more normal valuations. we're a long way from that, and i also feel like picking a bottom is really difficult considering that you never know if the pendulum is going to
swing too far or if it's going to land in just the right spot, especially when it's been too far high for -- >> is there -- >> is there, david, a portin this storm, and if so, where would you say you find such port >> i think the answer is yes plenty of stocks that are very -- strong cash flows that can be safe. they may not avoid a washout at all, but we think companies like shell, intel, domino's pizza are extremely well-positioned to be strong -- in the medium and long-term. >> shell, intel, and domino's pizza, that is a motley assortment mike, to tyler's question kind of look at the dashboard here and say what is it that we're watching is it momentum and technicals? is it the fed's liquidity, you know, and kind of how much further that has to run its course here throughout the rest of the year? >> it's all of that, kelly i think the big overarching
factor has been valuation compression, as you've seen yields go up, as you'd expect fed tightening, as earnings growth and aggregate slows, you're seeing these very highly valued stocks that have outsized influence on the indexes that have really had their premiums reduced, and you know, alphabet's a great example of that i've been pointing out that it's down to below 20 times earnings. that's not necessarily cheap, but it hasn't been much cheaper than that in the last five or seven years. it's because there is doubt about the earnings power and the growth as well as just what are we paying for it in this environment? >> and finally, mike, what's going on with tesla, and how indicative is that of the whole mood of this market? >> i think crucial to point that out, tremendous and aggressive downside in the most heavily traded stock and option in the market down 10% people are obviously kind of clenching up in advance of likely or expected sales by elon musk of his tesla shares, some of them, to back the twitter purchase it seems like the most logical thing to expect. he's also encumbering them with
margin loans, and it has been a risk appetite tale it's also owned by a lot of the same people that own a lot of the other big tech stocks, so you have portfolio damage across the board. and that has a knock-on effect. >> if elon tweets i don't have to sell any more shares, does it turn the whole market around >> i think it would quickly create a then where are you going to get the money, there's not a pool of that $20 billion he needs to come up with that we know about that can happen otherwise. >> tesla down 11% today in what is a pretty ugly market. thank you so much, mark santoli, david trainer for sharing your thoughts. tech stocks have been leading the decline with the nasdaq 22% off of its 52-week high twitter, it's actually dropping about 4% after his private takeover of the company was announced yesterday, so twitter shares are below 50. the deal price is 5420 some analysts are saying it could help boost ad revenue for
rivals like snap, and alphabet kind of helping to levitate the whole space. let's bring in andrew boone with jmp securities andrew, you know, i take your point about sort of the secular opportunity with social media, but right now is all of the sort of internet space facing just the receding tide of the pandemic you know, i do wonder even with the cloud numbers we're going to hear this afternoon whether we kind of just have to work through this period to figure out what does the new normal look like? >> i think that's fair, and if you look at the data thunderstorm out there, mastercard talked about e-commerce down 3% in march. other companies have talked about the slowdown that happened kind of post ukraine, russia i think the market is digesting the fact that you did have slowing, just overall consumer spend, advertising growth going through 1q, and i think that's continuing into april just given the commentary that we've heard from snap and what we'll hear in, honestly, the coming days from google tonight and then
facebook later >> let's talk about some of the things, mr. musk says he wants to do and like limit content moderation open the algorithm and edit button and so forth. the effect of that on advertisers will be what >> if i think about less content moderation, there are just now more brand safety issues, and so if you go back, you know, call it three, four years on twitter, remember the big push here was the fact that twitter was trying to clean up the platform from basically bullies, and so they've done a bunch of product work to be able to allow less hate speech to make sure that it's just a safer overall platform, so by unwinding that, i think that there's just more negative sentiment and may scare some green advertisers away from twitter. remember here 85% of advertising revenue is brand-based for twitter, and so where could those dollars go it could be a benefit for youtube. it could be a benefit for newer
products like facebook reelz, instagram reelz, and then tiktok is clearly the 800 pound gorilla here and is likely to take brand advertising from pretty much all platforms, you see engagement and they ring up more ad tools. >> are advertisers really going to be that proactive that they would fear that elon musk is going to make the platform such a free for all that they don't want their ads associated and they look elsewhere? >> i think it will be reactive it's really interesting if you're on twitter, you can see the notes from kind of the all hands meeting that took place yesterday. i think there's a lot of u uncertainty in terms of what the operational changes will be. when elon comes in, we'll have a better sense honestly the deal hasn't closed yesterday. he hasn't gotten inside. he's probably still talking to people i don't know that he knows when he's going to do yet there's some big picture ideas, but we'll see. >> he sort of hinted, maybe he stated outright that this twitter deal is not about making
money for him. what is it about then, and what if he doesn't make money with it >> you know, it's kind of the million dollar question. if he doesn't make money with it, he has other money that he will continue to have. >> yes, i'm not worried about him, no. i'm not. >> you know, the point being is what could the platform change and what could it actually look like, and again, it's just way too early to tell what the actual changes will be again, it sounds like there's going to be just more free speech, less fettered content moderation, and so, you know, again, we'll see what happens in a year >> you know, i'm looking at your coverage space, andrew, and this is in some ways where we've seen the most selling pressures, a lot of internet stocks, even names like uber that, you know, are trading well below their ipo levels where would you tell investors to look for businesses that you think are going to prove more
durable than the market is currently giving them credit for? >> yeah, we actually just put out a travel preview yesterday, and we're pretty positive overall in the mix to services, right? and so we're actually positive on uber. we think moebbility is increasig which is where a lot of the profitability in that business resides. we're pretty positive on travel names. if you look at the cadence in the quarter, you just saw strong axel acceleration of demand across travel we think that consumers are now prioritizing just getting out. one of my favorite stats that we kind of came across in doing work there is i think live nation is saying that as of mid-february ticket sales are up 45% versus last year i mean, there is just the absolute shift to consumers wanting to get out, wanting to go socialize so we think that we're favoring names within that space. >> all right, again, these stocks have been under such pressure, kind of need to shake
it off and get their mojo back with the rest of this market thanks for your time today. >> thank you >> andrew boone with jmp let's get a check on these markets where the nasdaq remains the worst performer, the dow down 610, the s&p down 88. coming up, sherwin williams is the best performing stock in the s&p today. the company says it has pricing power so who else has it, and is that the key to investing success these days and as we head to a break, take a look at ge that one down more than 10% after it said it sees inflation and supply chain challenges ahead. down now almost 11%. hybrid work is here. it's there. it's everywhere. but for someone to be able to work from here,
welcome back to "power lunch. i want to turn your attention to some consumer facing stocks the cruise lines trading slightly lower, carnival down by 6.5% news this morning that the ceo who's been at the helm for nine years is stepping down as ceo effective august 1st he'll be replaced by the coo josh weinstein who's been at the company for almost 20 years, and it comes just four months after richard fain stepped down as ceo of royal caribbean he was replaced by the cfo jason
liberty as the broader industry, guys, aims for a full recovery but at the same time is trying to effort this refresh and bring in some new people who also have long industry experience you'll see shares of carnival down about 6% today as part of this broader market selloff. >> it's been an exhausting period for a lot of those leaders trying to lead their companies through the pandemic thank you very much. shares of ford are lower as its iconic f-150 pickup goes electric the first trucks are rolling off the line today in dear born, michigan fill phil lebeau is out there. >> reporter: thank you, jim farley, big day as you begin shipping the f-150 lightning you made a statement a few minutes ago on stage, you said this is just the beginning, ramping up production, accelerating production up to 150,000 a year can you make it to 150,000 in the next year? >> we can. we have to pull out this building we've upgraded the building
twice, but it's all about batteries and raw materials. we have the batteries secured now, and we're in good shape. >> what keeps you up at night? >> for sure, a couple of things, batteries, raw materials that go in them and localizing that raw material chain in the u.s. and consumer credits we have to be competitive with china and europe and have consumer credits to help people. this is a $39,000 vehicle. we have to help regular americans get in this technology. >> with that $7,500 incentive. >> yes. >> here's the question, you know that we don't have localized materials for sourcing of batteries. it's going to take some time there. if i'm an investor, why do i believe that ford can produce 600,000 evs annually when the supply chain is just not there for not just you guys, the industry. >> first of all, we're going to protect these electric vehicles. this is a strategic move by the company that gets us 600,000 units. if we're shorted on semis, they're going into these kind of products, number one number two, it's ford motor
company. b 24 liberator, ventilators during the pandemic, the model t. this is what we do we're not some new startup this is what we do we build things in scale we know how to do this. >> you said on stage just a few minutes ago, this is the beginning of taking on tesla, beating tesla. can you catch tesla? because the analysts out there believe that the gap between you and other automakers and tesla is widening, you're not closing it. >> i wouldn't bet against ford this is a small team that did this product this is america's best selling vehicle. we're electrifying it, we have 200,000 orders the demand on the product and the way the company's executing mustang, transit, you know, we really have a chance now, it's up to us to execute. we have to execute to do that. >> you know that execution has been a bugaboo for you guys, especially in the last 15, 20 years. what have you done to make sure that this launch is not hit with the same problems you've seen in the past >> i've been personally involved i talk to lynn every night who's the chief engineer i come down to the rouge at least every weekend.
we're all involved everyone knows how important this is. the f-150 is second only to iphone in revenue as a consumer product globally we know what this launch means we know. and we're on time. we've built 2,000 units already some of our competitors have been building for a year and haven't built 2,000. >> getting back to the question of batteries and the raw materials. is the industry united enough with the current administration to make this happen? because you can't do it alone. you need the government in washington to step in. >> we do i would say the industry is starting to get in line because we all realize the same thing at the same time. we need mining permitting. we need processing precursor and refinement permitting in the u.s., and we need government and private sector to work together to bring it here we can't just mine the raw materials and ship it out to asia or africa we have to keep it here, and to do that, we need the government's support we have to move faster. >> big hurdles that you need to overcome in the next couple of years. >> yeah, but that's what makes this exciting, you know, that's
ford motor company that's why we come to work every morning. we want to solve big problems, hard problems, and ones that are important. we want to bring electrification to the many, not the few >> what would your grandfather say? he worked at rouge, what would he say if he saw this now? >> he would say, jim, what the hell is that a flying car he'd probably say to me, go back to work. >> jim farley, ceo ford motor company, we'll send it back to you on a big day for ford. >> fascinating fact that the f-150 by revenue is second only as a consumer product to iphone. that's amazing, phil, thank you very much, and mr. farley, you as well. up next, the pricing power dynamic as earnings roll out is a and higher inflation rolls in, which companies are displaying the strongest pricing power so far. we will take a look at three names making big moves today there you see them plus, chipotle one such name praised for its resilient pricing power, but could this be elngutheuar where consumers stop
raise prices and protect their profits. today a number of companies said they have pricing power, and dom chu has a roundup of some of the names, hi don. >> that's right. we're going to start with a name that's kind of implemented a number of price hikes over the course of the past year or so. we're talking about paint and codings manufacture sherwin williams, that stock outperforming today after topping wall street estimates early this morning, which the company attributed, by the way, to strong volume and pricing, especially in its performance codings unit while executives there believe the worst of the supply chain headaches are now over, they did note that margins remain under pressure because the pricing actions taken thus far haven't been enough to offset some of those higher total raw materials costs. also now switching gears to u.p.s., which also beat analysts' estimates even as volumes fell almost 4% during the quarter, but a near 10% jump in the average revenue per piece
or package fuel that had company's earnings beat. you can see those shares down about 2% and elsewhere in transportation land, we've got jetblue. that stock firmly in negative territory today as the airline scales back capacity growth in the face of higher fuel prices, but that being said, the company saw higher than expected demand from consumers, even as average fares surged more than 30% versus the same time last year jetblue also saw revenue per available seat mile, a very key metric for airlines jump 40, 4-0% so as the inflation situation continues, we're still seeing some companies that are able to shift past those costs on to consumers. just a handful of names, i'll send things back over to you. thank you very much. let's get to bertha kooms for a news update. >> a baby allegedly kidnapped yesterday afternoon has been found. the boy was taken to a hospital as a precaution. three suspects have been detained, including a woman who made conflicting statements to
police about the incident. in virginia, a forensic psychologist hired by johnny depp says amber heard suffers from personality disorders this coming as depp's libel case against his ex-wife. the expert witness also testified that heard does not suffer from post-traumatic stress from her relationship with depp. heard's lawyers will get to cross examine that psychologist this afternoon and in moscow, president putin and u.n. secretary general gutierrez have finished their meeting on ending the conflict in ukraine gutierrez criticized russia's military action as a fragrant violation of ukraine's sovereignty. the u.n. says putin has agreed in principle to help evacuate civilians from the massive steel plant in mariupol. back over to you tyler, kelly. >> thank you very much and ahead on "power lunch," 401 crypto, fidelity to allow retirement savers to put bitcoin in their 401(k) accounts, kelly.
plus, bitcoin hasn't proven itself to be an inflation fighter, but there are some dividend names that have done so in the past. we'll lay out a list of stocks that could beat inflation. and as we head to break, check out markets. the dow down 657 at the lows, look at it now, down 573 the nasdaq still the worst performer, consumer discretionary leading the declines we're talking names like tesla, wee ckn n.ur and wyn 'rba ia moment thankfully, vos comprehensive solutions, and shows me how to get the most out of my workplace benefits. voya helps me feel like i got it all under control. voya. well planned. well invested. well protected.
...hbo max... ...starz... ...and peacock. just say “watchathon” into your voice remote and get ready to watch! i love you! i love you! i love you all! 90 minutes left in the trading day, and it is an ugly day for the markets. our reporters are standing by to tell you everything you want or maybe don't want to know about stocks, bonds, commodities, and crypto in your 401(k). let's begin with bob pisani at the new york stock exchange tracking the selloff for us. hey, bob >> we are off of the lows, tyler, but not convincingly. the problem is very simple we are seeing multiple compression in the big tech names. microsoft's earnings coming out after the bell, microsoft's seen its musclltiple compressed abou
20% since the dwingbeginning ofe year that's about what it's down. apple, advanced micro sitting not far from a new law these stocks are having their multiples compressed we'll see if they get their earnings reduced microsoft going to be out after the bell speculative tech stocks they already had their multiple compressions most are at new lows today, zillow, roku, shopify, coinbase off associated with cathie wood and the arc fund as for the earnings, they're okay, but that's not the big problem. for example, sherwin williams better than expected, u.p.s. was good, 3m was good, but the guidance was weak. whirlpool was okay overall, but it doesn't matter. when they're dealing with big macro issues you don't get good credit for individual reports necessarily, though sherwin williams is having a very good day overall. another big problem is tesla we're dealing with a trillion dollar stock that's down 10% today that
is a huge weighting in the s&p 500, and just that alone was down it would be a bit of a weight on the s&p 500. given the tech stocks they're dealing with no wonder we're down 80 point thes s in the s&p march 8th and we are not that far away good 40 points tyler, back to you. >> thank you very much let's go to the bond market now where yields are lower long with stocks and rick santelli is tracking the action. why are yields sliding, rick >> yields are sliding because stocks are sliding, and there's still this relationship that some investors think at the fed, whether they push the economy into a recession or not, the aggressive tendency of the market to price in a fed with massive tightening is under scrutiny, and how can we tell? well, here's an two-year, and this is a short interim meaning from our time zone, and you can see around 1:00 eastern yields drop because it was a spectacular auction. i gave it an a plus.
if you open the chart up to 24 hours, you can see outside of our time zone yields really did the bulk of their dropping so to answer tyler's question, global growth is in question, the amount of fed is in question when stocks get hit this aggr aggressively, nasdaq on pace for its worst year or month since, what, 2008 all that doesn't get lost in the market the problem is is that the long data treasuries are much firmer. look at fed funds for december here's the three-day chart, and remember, as they rally, they diminish how much they're pricing in for the fed they're up about 13 ticks from their all-time lows, which means they've taken out only about 13 basis points of tightening now, if you look at the dollar, it's strong today, and it's not strong against the onshore yuan, it's strong against the euro currency right around there is where we were comping to until today
because today the euro dropped even further right now open it up to april of 2017 because the euro's on pace for a fresh five-year low close underscoring nervousness about growth is the fed doing too much, and of course all this brings some buying in especially to the dollar tyler. >> thank you, rick rick santelli. now let's go to crude, it's closing for the day back above $100 a barrel, and pippa stevens is tracking the move there hey, pippa. >> hey, tyler. rebounding today with gains accelerating during mid-morning trading after germany's economic minister said that an oil embargo for the country has become manageable. that's according to reuters. now, those comments come as the eu how to move away from russian energy let's check on prices, wti up 3% at 101 hnt 47. brent crude at 104.75 for a gain of 2.4%. nat gas still up 2%, earlier it
did trade above $7 ask take a look at heating oil, that contract is surging 8% today. u.s. inventory for distillates is at the lowest since 2008. also wanted to point out shares of valero, moving higher as they beat top and bottom line estimates with revenue growing 85% year-over-year, citi thinks the stock is now heading to a new all time high. the firm raised its full target to $138 per share. >> pippa with some serious books behind her there pippa, we thank you very much for that all right, i haven't read a book that thick since college, i'm telling you. the price of bitcoin back below 40,000, even as fidelity says retirement savers can put cryptocurrency in their 401(k)'s kate crypto rooney is at an event in the bahamas hosted by ftx, and she spoke to ftx's ceo. crypto kate, take it away.
>> reporter: hey there, tyler. great to see you i did indeed speak to the ceo and cofounder of ftx, we sat down about ten minutes ago he said he supports fidelity's move he sees it as a good thing for the industry, and he says it expands access take a listen. >> i think it's going to start off small like all of these things, not expecting billions of dollars flowing in on day one or anything, but what it does is opens up another option for employers and ultimately for employees to be able to invest in what they want to invest in, and i think that ultimately it's going to become pretty big >> reporter: i also asked him why fidelity, charles schwab, e-trade haven't started offering bitcoin directly they right now have to offer through gray scale bitcoin trust and other proxies. he says that will happen eventually he expects it. he says it will add competition, but it also adds to consumer choice, and he says that ftx may get into 401(k)s at some poin. something to watch i also asked him about twitter
and elon musk. he said the crypto community is particularly excited about that. sam bankman-fried has been tweeting about it. he hasn't talked to musk yet, but he says he welcomes that deal. >> ultimately this only makes sense if he's excited for that vision of it, right? if he's excited about what could happen in the intersection of blockchain and social media, and i think this would also be an experiment, right? i think it's really compelling, and i think that there's a lot of upside there, but we can't know until we try, and you know, there are a lot of pieces of this that would need a lot of testing. >> he talked about the upside being using crypto for payments and potentially taking down some of the walled gardens of facebook, twitter, and making them work together more smoothly we'll see if he ends up talking to musk, last thing we talked about bitcoin prices he says it's actually less -- he said things like global politics and really reading the tea leaves, he said, on u.s. politics, but we'll see. a little less macro related, and
a little less fed-related according to him >> i just wonder in general, kate, when we're facing a public that's kind of back at work and a liquidity tide that's been receding, and maybe bitcoin just becomes, you know, as it seems like a new asset class, but i do wonder about the rest of the space, maybe other than doge, which is having its day. >> right, yeah, it's interesting. i mean, 401(k)s really are the main entry point for a lot of people into the equity markets and the argument from the bitcoin bulls is if you set it and forget it and maybe look at a ten-year time horizon the same as you would for 401(k) that is the way people suggest you should invest in crypto. if that is the case, it could be a good thing it's also up to the employer at this point if fidelity can actually start offering this we'll see how the employers feel about it, if they jump on board as well. >> even doge is down today kate rooney, thank you we always appreciate it.
chipotle keeps raising prices and consumers keep coming back is their pricing power waning, though the stock down this year plus, we continue to watch tech stocks dropping, apple down more than 2% the stock on pace to close below its 200-day moving average for the first time since mid-march, and apple's also having its worst month since last fruy.ebar we're back in a moment
welcome back to "power lunch," everybody. consumers can expect higher menu prices at chipotle to stick around for a bit ceo brian niccol recently saying that the chain will likely increase prices again this year to offset costs. now, the stock is down 18% this year the question is whether consumers will keep paying up. kate rogers joins us with more kate. >> hey, kelly, chipotle has long touted its pricing power and value proposition, and that will of course be a big focus again this quarter the stock is one of kcowen's to picks of the year because it caters to a higher income dem grachk and has a loyal customer
base along with higher wages in this tight labor market the street today will be looking for eps of $5.64 on revenues of $2 billion same-store sales expected to increase by 7.9% that's a strong number in this space as costs continue to rise and the company is set to surpass 3,000 locations in the quarter as well. digital sales always a focus, last quarter accounting for more than 40% of the company's swroefr all sales, and a final note of interest, any more color or announcements on chipotle's technology plans, beyond digital it announced a venture fund to invest in neuro, the delivery robot in late 2020 and it's been testing out chippy the robot to make its tortilla chips. the company's chief technology officer has told me that they want to be really intentional on their tech investments and lead on technology in the future. as you mentioned, the stock is down about 9% in april, but it's up over 5% in the last three months. >> how much have they raised
prices already, kate, and how much more are we talking >> to date last quarter, at the end of last quarter, chipotle's ceo said they raised menu prices by about 6% in 2022 compared with a year ago, customers back then were paying about 10% more for their orders we'll see if we get an updated number today these customers are willing to come back to the restaurant, they have not turned away yet. we'll see what they have to say after the bell. >> all right, kate, thank you very much. and hunting for yield and safety, three names to consider for your portfolio amid this volatility that is today's three stock lunch. caution. vehicle electrified. contact results in rapid heart rate. shortness of breath. and a tingling in the extremities. serious thrills may occur. the all-electric amg eqs.
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welcome back, everybody. let's talk about those stocks. they are lower across the board as we like to say, 638 points, a little rally back to about 500 down a few minutes ago for the dow, but now back nearly 2% lower. it is once again nasdaq off almost 400 points, 3% on the button the dow is near session lows first the worst day since march 7th, actually, for lots of these things for investors looking for safety
and market amid this volatility, cnbc.com came out with a list of ten stocks each have high dividend yields and are outpacing the averages this year, among them at&t, intel, and newell brands, and we will sample them in today's three stock lunch. we welcome in the managing director at bks a is the management, he's also a cnbc contribute and many other things let's start with at&t, and i know one of the things you like about it, apart from the fact they frankly had one of the most bungled acquisitions in the history of corporate america with the warner media. >> that's an understatement, yes. >> they've got a 5.7% dividend yield, that's pretty good. >> it is it's 5.7 dividend yield, which is way above the ten-year yield. they have enough free cash flow to cover it at 69% payout ratio, so they're in good shape financially, and most importantly, they're now turning their attention back to their
core telecom business. with 5g growing, although it's growing slowly, but eventually it's really going to become a big, big part of everybody's life, it's very likely going to create more applications, and that puts at&t, i think, in a very, very good spot to it's a little wobbly in the price action so to me i think the interesting strategy is buy a third here and then sell cash secured puts in two tranches after 19 and 18 and it will emulate the covered cost strategy without you having to give up the stock so you'll get a little bit of a yield and maybe better positioning in the stock. overall i think it's a pretty solid pick at this point. >> all of these make people a little nervous, boris, that's why they show up if they didn't they wouldn't offer these returns. we have as we just talked about at&t, intel and newell, they've all had their issues so let's focus on intel is this name now you think a candidate to be a steady
dividend stock for shareholders? >> so i think dividend is pretty secure but i'm very much afraid that intel could be a bear trap. this is -- of all the stocks we have on our list this is the one i have the least enthusiasm for simply because they've obviously stumbled very badly in the past but more importantly, going forward there is a lot of head wind here, the pc market will experience probably a lot of problems because of the war in europe and slowdown in china the focus on intel in the data center field but competition from nvidia and amd so the question, is their new product going to take the market by storm? i'm not so sure and that's what makes me hesitate going full on in intel >> let's go on to another one that has been called dead money for some time and that's newell brands on pace for its best month in a year. >> yes. >> everybody has a rubbermaid
sink stopper, doggone it and a sharpie. i'm telling you i'm declaring i am willing to pay 10% more for a sharpie. >> there you go and a coleman cooler so all those things is the key thing. it has good brand names. the pricing pressure now is going to work in their favor look at their underlying fundamentals, they're looking pretty good. free cash flow improving and the margins are looking almost at double digits and all is a positive dead money forever but because it's so cheap now at 20 and because the yield here is almost 4%, i think it's a very attractive buy one of those quiet keepers that could go to 30 over the next 18 months so, therefore, i really like it. >> let's get a thought on what you see in the market right now with the dow down almost 600 points what's your counsel? >> well, you know, we're obviously having a very serious correction it all depends on your time line generally i mean the single most
interesting fundamental or scholastic about the stock market is it's a 60/40 game. meaning 60% of all days are winning days and, therefore, buying the dip whether it's on a qua quarterly, annual or intraday basis is much more of a winning strategy than investors believe. i am still bullish but obviously cautious that we could have more pain to the downside. >> long-term bullish and a couple of big issue, china and a war to settle out, not to mention interest rate -- go ahead. >> i think investors need to remember that stock market is always a 60/40 coin and that's a good odd to take. >> thanks a lot. boris schlossberg. for more check out the whole list on cnbc.com/pro up next, a very ugly corner of the market. yeah, still we're looking at stocks trading the most below ept presng-term trend ic ke ihere
welcome back, everybody. we're watching a pretty tough session unfold in the market, the dow down 535 points, about 100, 150 points off the lows right now. we're taking a look at the stocks that are trading the most below their long-term trend prices dom chu back with the detail. >> many are in the nasdaq 100 overall but let's take a look at the reason why we're looking at
this at the lows of the session, about 425 some point losses for the nasdaq composite overall the way things are shaping up the level you want to watch is 12,555, that represents by the way the lows that we saw for the year just over the course of the last month and a half or so so that's the key level you can see we're almost at that low level here it also means we're below both the 50-day average price, medium term trend line and 200 as well so we took a look at the s&p 500 stocks the furthest below that 00-day average price and these are names we know, yes, in the s&p 500 so they're already large cap to begin with, netflix is now the stock in the s&p that's trading the most below its long-term average price, 61% below it paypal, we know how tough that trade has been, 58% its trend, epam, technology, digital consulting site, engineering
services is 49% below its long-term trend, etsy when it comes to e-commerce down 48% and moderna's 46% below. each is in the nasdaq traded except for epam an nyse listed stock and they represent some of the deeper value situations where people may say it's fallen enough or is it the falling knife that i don't want to catch because it could still go down more. >> epam might be the one affected by the ukraine operations that it has as well to your point there are a couple of names like epam or netflix where the story has changed for good and a couple of others, the jury is maybe out. >> what kind of caught my attention the notion that you have brand nape notice there, earlier this hour i saw -- i was intensely watching that segment you had on social media stocks that were hit pretty big number seven on the list of the s&p 500 stocks that's the most away is meta platforms, of course, so talking about some brand name situations where
there are, yes, fundamental and headwinds at play there. if you look at the way some investors are trying to figure out whether or not there is a deeper value type situation there, now, i would also point out if you look elsewhere down the list it is typically growth oriented names just generally speaking the curious part about that today is that you have interest rating falling in a bid to safety yet those interest rates falling are not providing any kind of a help to the overall market which kind of implies that there is a whole safety trade that may be in play right now. >> what's interesting about this time it seems to me is so many of the ones that have fallen like a meta, like a netflix, like a moderna for that matter, paypal, these were not just high-flying -- they were real market leading stalwarts. >> and pandemic related for part moderna, certainly, with the vaccine trade and you had paypal because people didn't want to touch everything so anyway, interesting stuff. >> dom, thanks
you know what happens thursdays, the cnbc stock draft returns, thursday, april 28th at 2:00 p.m. eastern time 60 assets will go up for grabs, grab your assets and ten teams will be on the board including old favorites and some new big names and we will announce the winner of last year's draft, won't we >> i think i know who it is but with the market -- thanks for watching "power lunch." >> "closing bell" right now. looking forward to thursday, stocks are sinking and the nasdaq is tanking. most important hour of trading starts right now welcome to "closing bell," everyone another down day where the nasdaq is down 2 1/2%. the dow down almost 600 points, low of the session was 657 points but every dow stock lower except for chevron, energy is the only standout which is sector outperforming today here's where we stand overall, the small caps are are down 2.2%, nasdaq heat 100 map shows you tech is in the eye